China banking: non-financial institutions required to report large transactions from 1 January

On 25 June 2018, the Bank of China issued the Notice of the People’s Bank of China requirements for non-financial institutions to report large transactions (the Notice) effective from 1 January 2019. Below, we highlight the main takeaways from the Notice.

Who is required to report?

Any non-financial institution holding a payment business license, including WeChat and Alipay platforms.

Which transactions shall be reported?

  • Singular or accumulated transactions of more than RMB 50,000 or foreign currency equivalent to US$10,000 and above during a one-day period.
  • Singular or accumulated payments of non-natural persons totalling RMB 200,000 or foreign currency equivalent to US$20,000 USD or more for one day.

  • Singular or accumulated domestic transactions exceeding RMB 50,000 or foreign currency equivalent to US$10,000 USD or more for one day.
  • Singular or accumulated international transactions of RMB 200,000 or foreign currency equivalent to US$20,000 USD or more for one day.

Which transactions are exempted from reports?

  • Where the party of a transaction is a government institution (all levels), institution of state power, government administrative institution, judicial institution, military institution, People’s Political Consultative Conference, People’s Liberation Army and the Armed Police Force (although subordinates of the above such as enterprises and institutions are not exempted).
  • Transactions related to the processing fees of non-financial institutions.
  • Public utility transactions such as water, electricity, gas and other related utility fees.
  • Other circumstances defined by the People’s Bank of China.

What information shall be reported?

Non-financial institutions shall report the account holder’s identification and transaction details within 5 working days.

If you would like more information about the Banking in China or other related corporate matters, send us an email at talktous@horizons-advisory.com, and we’ll have a Horizons professional contact you.

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